GuruFocus Financial Strength Rank measures how strong a companys financial situation is. It is based on these factors:

 1. The debt burden that the company has as measured by its interest coverage (current year). The higher, the better.
 2. Debt to revenue ratio. The lower, the better.
 3. Altman Z-score.

Motorola Solutions Inc's interest coverage for the quarter that ended in Mar. 2015 was 2.77. Motorola Solutions Inc's debt to revenue ratio for the quarter that ended in Mar. 2015 was 2.78. As of today, Motorola Solutions Inc's Altman Z-score is 2.33.

Definition

GuruFocus Financial Strength Rank measures how strong a companys financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its interest coverage (current year). The higher, the better.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a companys Operating Income (EBIT) by its Interest Expense:

Motorola Solutions Inc's interest expense for the three months ended in Mar. 2015 was $-43 Mil. Its operating income for the three months ended in Mar. 2015 was $119 Mil. And its Long-Term Debt for the quarter that ended in Mar. 2015 was $3,392 Mil.

Motorola Solutions Inc's Interest Coverage for the quarter that ended in Mar. 2015 is

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Motorola Solutions Inc has a Z-score of 2.33, indicating it is in Grey Zones. This implies that Motorola Solutions Inc is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

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